deflationary spiral

And the consequent widespread price plunges would cause a negative feedback loop — “It’s very hard to get out of a deflationary spiral,” Wolfers said.

That threatens to become what some economists say could be a deflationary spiral as prices for housing and other goods fall, discouraging investment that would create jobs and spur a stronger recovery.

Deteriorating city finances prompted pay cuts for civil servants, feeding a deflationary spiral.

Yet it also underlines the scale of the challenge that Beijing faces in avoiding an outright deflationary spiral.

The lack of broad wage growth illustrates Japan's struggle to escape a deflationary spiral that has forced households and businesses to scrimp instead of spend.